Parsvnath looks to monetise land assets in southwest region

DELHI: Realty firm Parsvnath DevelopersBSE -0.38 % today said it plans to monetise non-core land parcel in South- West India either through joint ventures with local builders or outright sale of plots.

It is targeting to become a debt-free company by end of 2014-15 fiscal mainly on the back of revenues generated from two commercial projects in the national capital.

"We have some assets in Chennai, Hyderabad, Kochi, Goa, Mysore and Palghat. We are looking to monetise these assets or form joint venture with local developer," Parsvnath Developers Chairman Pradeep Jain told reporters here.

Parsvnath has 85 acres land in Kochi, of which 50 per cent has already been notified as Special Economic Zone and process for the next half is in progress. It has 35 acres in Chennai and 75 acre in Mysore.

"We are thinking to start the discussion (for monetisation and joint venture," he said.

Asked about debt, Jain said it is around Rs 1,300 crore. "We will be debt free by March 2015," he added.

Parsvnath is banking on two commercial projects in Delhi and one upcoming township at Sohna Road in Gurgaon for reducing its net debt.

"We will soon start lease/sale of commercial space at our commercial buildings at Gole market and KG Marg in Delhi," Jain said, adding the township in Gurgaon would be launched in the January-March quarter this fiscal.

Asked about the fall in profit in second quarter, Jain said tax expenses have increased to Rs 15 crore from about Rs 10 crore as government has withdrawn the tax exemption on affordable housing.

Yesterday, Parsvnath Developers reported 30 per cent fall in consolidated net profit at Rs 12.51 crore for the second quarter of this fiscal due to higher outgo on tax. It had posted a net profit of Rs 17.93 crore in the year-ago period.

Total income from operations rose by 8.5 per cent to Rs 162.46 crore during July-September period of 2013-14, from Rs 149.65 crore in the corresponding period of last fiscal.

Parsvnath is currently working on 50 projects with a total area of 75.7 million sq ft. Its business portfolio includes residential, commercial (office and retail), DMRC Projects, Hotels, SEZs and IT Parks.

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